Dividend growth stocks can be fantastic investments to hang on to as they allow you to earn more dividend income over the years, simply by holding onto them. And that can be particularly important with inflation chipping away at your income over the long haul.
Last week, Canadian pipeline giant Enbridge (TSX:ENB)(NYSE:ENB) announced that it would be increasing its dividend by 3%. With the increase, that means that Enbridge’s streak of dividend increases has hit 30 consecutive years, making it one of the better dividend growth stocks you can find on the TSX.
Enbridge has also provided encouraging guidance for 2025. The company expects to hit the high end of its EBITDA forecast for this year and anticipates continued growth, projecting distributable cash flow (DCF) to rise by approximately 3% per share over the next couple of years.
DCF is a key metric Enbridge uses to assess dividend sustainability, so an increase signals good news for investors. It suggests the potential for future dividend raises, though with DCF growing at 3%, any increases in the dividend are likely to be modest.
That said, with Enbridge already offering a high yield of around 6%, it provides an attractive payout that makes the stock appealing even without significant dividend hikes.
Enbridge’s focus on long-term contracts ensures steady cash flows, making it a reliable investment for those seeking stability. For long-term investors, it remains one of the top TSX stocks to consider, whether you’re looking for stability or just want to collect a lot of dividend income.
